Luxembourg's Government Council has approved a draft law to extend mandatory electronic invoicing to domestic B2B transactions, with phased implementation between 2028 and 2029, alongside a technical framework based on the Peppol network and support measures for businesses.
Luxembourg’s Government Council has approved a draft law to extend mandatory electronic invoicing to domestic business-to-business (B2B) transactions between businesses established in the country. The proposal, approved on 17 July 2026, remains subject to parliamentary approval before it can enter into force.
The draft law would expand the existing electronic invoicing requirement, which currently applies to public procurement and concession contracts, by introducing the obligation for domestic B2B transactions. The measure is intended to align Luxembourg’s legislation with Article 1 of Council Directive (EU) 2025/516 of 11 March 2025, which amends Directive 2006/112/EC on VAT rules adapted to the digital age. It also forms part of the country’s broader digitalisation strategy for administrative and financial processes.
Implementation timetable
The draft legislation sets out a three-stage implementation schedule:
- 1 January 2028: Mandatory receipt of electronic invoices for all businesses.
- Â 1 July 2028: Mandatory issuance of electronic invoices for large and medium-sized businesses.
- 1 January 2029: Mandatory issuance extended to all remaining businesses, including smaller enterprises.
The timetable will be confirmed during the parliamentary process.
Technical framework
Alongside the draft law, the Government Council endorsed a draft regulation establishing the technical framework for a common delivery network and alternative transmission methods for electronic invoices.
The proposed framework adopts a four-corner model based on the Peppol network, building on Luxembourg’s existing public sector infrastructure. It is designed to provide a common delivery network for the issuance, transmission and receipt of electronic invoices, avoiding the need for businesses to deploy separate, non-interoperable technical solutions.
Business support measures
To assist businesses with the transition, the Chamber of Commerce plans to organise information sessions and practical workshops, while also updating its practical guide to electronic invoicing.
Financial assistance will also be made available to help businesses acquire software that complies with the new electronic invoicing requirements.
Next steps
The draft law will now proceed through Luxembourg’s parliamentary process, where lawmakers will finalise the implementation dates, scope and technical standards before the legislation is adopted and enters into force.
